How Much Interest a $100,000 CD Can Earn at Current Top Rates

If you have a large sum of money and are unsure what to do with it, it may be tempting to invest in stocks or bonds. Historically, stock returns have ranged from 10% to as high as 16% in recent years, which could grow a $100,000 investment substantially.

But stocks can also lose value. Market swings can be sharp, especially in the current inflationary environment. What performs well one day may not the next, before reversing course again. Savers can avoid this risk by placing the money in a fixed-rate savings vehicle instead.

A certificate of deposit account is the obvious choice, especially now that the Federal Reserve is keeping higher rates on pause indefinitely. CD rates are competitive, though not as high as typical stock returns. Because the rates are fixed, savers can calculate their exact interest earnings over time. Using today's top rates, here is how much interest a $100,000 CD can earn.

CD interest rates vary by term. Right now they are all within a few basis points of one another, giving savers several options. Here is how much $100,000 will earn with eight different CD terms, calculated using the top rates for each and assuming no fees or early withdrawal penalties:

$100,000 3-month CD at 3.90%: $961.06

$100,000 6-month CD at 4.10%: $2,029.41

$100,000 9-month CD at 4.00%: $2,985.24

$100,000 1-year CD at 4.10%: $4,100.00

$100,000 18-month CD at 4.09%: $6,197.31

$100,000 2-year CD at 4.16%: $8,493.06

$100,000 3-year CD at 4.13%: $12,908.75

$100,000 5-year CD at 4.15%: $22,545.22

With a CD of this size, savers can earn close to $1,000 in interest in about 90 days or more than $22,000 over five years. The interest comes risk-free because the principal and rate are protected from market swings. CDs are also FDIC-insured up to $250,000 per account, which covers an account of this size.

Savers must be comfortable leaving the funds untouched until maturity, since an early withdrawal fee on an account this large could be substantial.